The Union Consumer Affairs Minister Pralhad Joshi has directed the Central Consumer Protection Authority (CCPA) and the Department of Consumer Affairs to investigate online flight booking platforms for charging cancellation fees higher than those levied by airlines, according to medianama.com. This directive came on May 23 following concerns raised about discrepancies in cancellation fees charged by online travel aggregators (OTAs) compared to airlines.
The investigation was triggered after BJP member Tejinder Bagga posted on X highlighting a case involving Agoda and Akasa Air. Bagga’s Agoda booking showed a cancellation fee of Rs 4,764, leaving a refund of Rs 1,571, while Akasa Air’s actual cancellation fee was Rs 299, with a refund of Rs 6,076. Bagga questioned why Agoda charged 15 times the airline’s cancellation fee, tagging Agoda India, the Ministry of Civil Aviation, and consumer rights group Jago Grahak Jago in his post, calling the extra charge unethical.
This probe is significant as it addresses consumer protection concerns in the growing online travel booking sector, where OTAs often add fees beyond those imposed by airlines. The investigation could lead to regulatory scrutiny and potential reforms in how cancellation fees are disclosed and charged by OTAs, impacting major players like Agoda, MakeMyTrip, and Cleartrip.
The CCPA and Department of Consumer Affairs are expected to examine the fee structures of these platforms and ensure compliance with consumer protection laws. The outcome of this investigation will be closely watched by consumers and industry stakeholders, with potential policy changes to enhance transparency and fairness in online flight bookings.